Massachusetts
Housing Market
The landscape of Massachusetts’s housing market evolves with shifting home prices and demand. Houzeo’s housing market report tracks constant changes in supply and demand across Massachusetts. Our report offers real-time insights to help you make informed decisions.
Overview
Supply
Demand
Buy or Sell
Market Insights
MigrationMassachusetts Housing Market Overview
Home prices in Massachusetts show a growth of 8.7% YoY as of January 2025. The steady increase in home prices indicates the strength of the housing market. The median home price in Massachusetts is $622,300 and it’s expected to go even higher in the coming months. The number of homes sold has increased by 11% YoY.
You can also check the market competitiveness through median days on the market. Homes in Massachusetts now spend only 34 days on the market before going under contract. All these metrics collectively indicate changes in the Massachusetts housing market’s pace and affordability.
What Does It Mean for Home Buyers and Sellers?
You can also check the market competitiveness through median days on the market. Homes in Massachusetts now spend only 34 days on the market before going under contract. All these metrics collectively indicate changes in the Massachusetts housing market’s pace and affordability.
What Does It Mean for Home Buyers and Sellers?
- If You're a Buyer: You get less negotiation power as the median days on the market are just 42 days. Moreover, mortgage rates at around 7.08% reduce the buying power. The median home prices in Massachusetts are also far above the national average, making housing in MA very expensive. You can plan to buy a house if competition is low and inventory increases in the upcoming months.
- If You're a Seller: You can profit from the growing house prices and high demand in Massachusetts. The 8.7% in home prices and 11% increase in the number of homes sold signals more opportunities to make a profit while selling a house in Massachusetts.
Massachusetts Housing Supply
Massachusetts's homes for sale inventory has a standard trend to rise post-February and March. Homes for sale in Massachusetts have increased by 5.7% year over year in January 2025. Currently, there are 11,514 homes in Massachusetts for sale. The market leans towards sellers with only 2 months of supply. Fewer months indicate a seller’s market, and more months indicate a buyer’s market.
What Does It Mean for Home Buyers and Sellers?
What Does It Mean for Home Buyers and Sellers?
- If You're a Buyer: You have more competition as home supply is very tight. The 99% sale-to-list price ratio suggests that the competition is higher, and you have to wait a little until the home prices get stable. If you see a growth in inventory level and a dip in the median sale price, you can still buy your dream home in MA.
- If You're a Seller: With 2 months of supply and growing median home prices, you’re in luck. Act fast and sell your home before more supply hits the Massachusetts real estate market. Rising inventory could lower demand and lead to fewer offers, but there is only a slight possibility of high growth in inventory. To attract buyers, focus on staging and marketing your home effectively.
Massachusetts Housing Demand
The percentage of homes selling above the list price is a key indicator of housing demand. When more homes sell above the list price, it shows strong buyer competition and high demand. A decline suggests more supply. Tracking this trend helps you gauge market competitiveness.
In January 2025, 37.7% of homes sold above the list price, while 20.6% of homes sold below the list price. It suggests that the competition among buyers is very high, and hot homes sell within 7-15 days. With a 99.7% sale-to-list price ratio and limited supply, the negotiation power lies with sellers.
What Does It Mean for Home Buyers and Sellers?
In January 2025, 37.7% of homes sold above the list price, while 20.6% of homes sold below the list price. It suggests that the competition among buyers is very high, and hot homes sell within 7-15 days. With a 99.7% sale-to-list price ratio and limited supply, the negotiation power lies with sellers.
What Does It Mean for Home Buyers and Sellers?
- If You're a Buyer: The current housing market in MA has a few metrics that lean in your favor—such as the 20% of homes with price drops and increasing inventory at 5.7%. However, high mortgage rates and homes spending fewer days on the market could make things tough for you.
- If You're a Seller: You'll make good profits if you sell now. With the 8.7% increase in home prices, a 99% sale-to-list price ratio, and limited supply, the negotiation power lies in your hands. You will experience high demand and more bidding wars for your home during summer.
Is it a Buyer’s or Seller’s Market?
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Buyer’s Market
Seller’s Market
Seller: Housing demand exceeds supply and drives the prices up. Homes sell fast and get multiple offers from buyers.
Is it a Buyer’s or Seller’s Market?
As of January 2025, home sellers in Massachusetts have an advantage due to increased prices and a limited supply of homes. For buyers, home sale prices are not affordable and competition is high amid growing mortgage rates. The current mortgage rate is close to hitting 7%, which may reduce buying power in the state-wide real estate market.
Additionally, a slow growth in housing inventory does not provide many options to new home buyers in Massachusetts. However, these housing market trends vary significantly across the state. Falmouth city has even higher median home prices at $875k along with longer days on the market i.e. 61 days. The market in Falmouth is comparatively less competitive and homes take longer days to go under contract. You must check your local real estate trends before you decide to invest.
Massachusetts Housing Market Insights
The housing market in Massachusetts is highly competitive compared to the nationwide market. Massachusetts property prices are rising at a rapid rate. The median home price in Massachusetts ($622,300) is much higher than the national median of $418,489. Inventory trends indicate a growing availability of for-sale homes in Massachusetts, though at a slow pace. Currently, there are 11k homes available in the Bay State.
Housing markets like Lowell show high competition. Home prices have grown at 11% YoY with a sale-to-list price ratio of 102%, which are clear pointers to a seller’s market. Homes go under contract within 10 days and get multiple offers from buyers. Overall, MA’s housing market favors home sellers. If you’re buying a house in Massachusetts, you can still find affordable houses as the median home value is relatively low. You can also wait till MA home prices drop further.
Housing markets like Lowell show high competition. Home prices have grown at 11% YoY with a sale-to-list price ratio of 102%, which are clear pointers to a seller’s market. Homes go under contract within 10 days and get multiple offers from buyers. Overall, MA’s housing market favors home sellers. If you’re buying a house in Massachusetts, you can still find affordable houses as the median home value is relatively low. You can also wait till MA home prices drop further.
Nationwide Migration Trends
Last year, Massachusetts residents moved out of the state to relocate to states like New Hampshire, New York, and Pennsylvania. Over 184,000 people relocated from Massachusetts over the last year due to the higher cost of living. There is also a conspicuous inbound trend, with MA gaining almost 145,021 new residents in 2023-24. The new residents primarily came from California and Florida.
Despite Massachusetts’s cost of living being 46% and housing is 108% higher than the national average, people are attracted to excellent education and healthcare. People get insurance with high coverage rates.
Despite Massachusetts’s cost of living being 46% and housing is 108% higher than the national average, people are attracted to excellent education and healthcare. People get insurance with high coverage rates.
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Frequently Asked Questions
Q. How have house prices in Massachusetts changed over the past year?
Ans: Home sale prices in Massachusetts have continued to rise over the past years, driven by high demand and low inventory. Prices have increased at an annual growth rate of 8.7%, with multiple regions seeing large double-digit percentage growth. You can check your home’s fair market value with a free home value estimator to know where you stand.
Q. Why is it so expensive to live in Massachusetts?
Ans: Massachusetts’s housing market shows an upward trajectory for home prices and inventory. Despite its high cost of living, a large population flock here due to its quality of education, better economy, and life. Massachusetts also provides a robust economy with high-paying jobs and a rich history. While Pittsfield city provides affordable housing with a median value of $269K, Nantucket city provides high-end luxury homes with median values of $1.84M. The cost of living here is 58% above the state average.
Q. What’s the average house price in Massachusetts?
Ans: The average home price in Massachusetts depends on house type, size, and local market conditions. It typically ranges from $543K for condos to $627K for single-family homes. If you plan to buy, you can find cheap homes for sale in MA that fit your budget.
Q. When will the housing market crash in Massachusetts?
Ans: As per the Massachusetts housing market predictions for 2025, the market is very unlikely to thaw. The real estate market is expected to yield high profits to home sellers. Rising median home prices and mortgage rates may make it hard for buyers to find affordable homes in Massachusetts. Nevertheless, demand and supply for homes will continue to flourish due to a robust economy and population growth in the state.
Q. Is this a good time to buy a home or sell a home in Massachusetts?
Ans: The housing inventory is tight and home prices are on the rise. You must check real estate trends for prices and inventory in your city along with the mortgage rates. Sellers can benefit from high demand and rising prices. However, when mortgage rates are stable and there is plenty of housing inventory, that’s the best time to buy a house in Massachusetts.
Q. What is the cheapest place to buy a house in Massachusetts?
Ans: Though property prices are rising, the average home value in the top 10 cheapest cities is still only around $400K. North Adam’s cost of living is 4.1% lower than the national average, and Pittsfield is 4.1% more affordable than the rest of the country. Pittsfield city provides affordable housing with a median value of $269K. The median house rent in Springfield is $1,750, rental prices are between $675 and $3,200 and its cost of living is 3.8% cheaper than the national average. You can compare costs of living, housing costs, and median home prices to narrow down the cheapest places to live in Massachusetts.
Q. What are the best areas in Massachusetts to buy a home?
Ans: Cambridge, Worcester, and Quincy are among the best areas to buy a home in Massachusetts. These cities top the list of best areas based on factors like community well-being score, median household income, and safety index. You must compare and select the best place to live in Massachusetts before making an investment.
Q. How can I list my home for sale in Massachusetts?
You can list your home for sale with a Flat Fee MLS Massachusetts listing service. High-tech MLS listing sites like Houzeo automatically assign the right MLS paperwork based on your location. 🚀
Q. What is the average mortgage rate for buyers in Massachusetts?
Ans: The average mortgage rate for buyers in the MA housing market fluctuates between 6.90% and 7.08%. It depends on the market and your credit score. Always check current rates with lenders before you apply for a mortgage.
Q. How much does it cost to live in Massachusetts?
Ans. The cost of living in Massachusetts is 46% higher than the national average. The cost of living varies as per your city. The priciest city is Nantucket, where the cost of living is 58% higher than the state average and 132% higher than the country. Pittsfield is among the cheapest city where the cost of living is 30% lower than the national average. However, housing alone is way higher in most of the cities due to the population and economic growth. You can use our free Massachusetts cost of living calculator to know more.
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